Analysis of Apple Company
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Analysis of APPLE Company
Apple company is one of the famous companies in the western continent that deals with the technology product’s that include the iPhone, and it was introduced in 2007. It has revolutionized the market of telephones. This paper will analyze the financial report and situations of the company from 2017-2019.
The company has managed to sell big in the market through its products that they put in their app store, which other mobile selling companies like Nokia are struggling with, yet they are seen as the main competitors. Financials of the company have been developing virtually in the market, and this has been the center of success in 2018.
Apple has 25 stores across countries, and North America is the leading then closely followed by Europe and Asia. North America is the leading among all in the sales market for the Apple products these sales are made in japan, china, Europe, and North America. Today apple products are available online everywhere around the globe.
The business of the company comprises of different units, and it is considered a diverse business in the market. In 2019 the company’s net worth was $98 billion, where when debts are added, it goes up to $108 billion. The company boasts marketable securities, cash equivalents, and cash positions that can be compared with large assets of managers. With the cash flow in the company, it is likely that in the future, it will continue to hold a large cash position.
The company expenses in 2009 were $ 1.3 billion, and in 2019, it was 16 billion, and this represented a 13 times growth. The dramatic increase in sales is put into account. The company has increased in development and research for the past years intensively. Investment in development and research in the company is pleasing since few companies give apple a competition since they don’t have the same characteristics. In 2019 the company invested $4.2 billion on development and research, which is the highest when compared with the net worth since 2003.
In the revenue analysis, the company has been recording a relevant increase for the last nine years. There was just a drop of 10% between 2011 and 2019. There was negative growth between 2017 and 2019, which recorder -8% and -2% both respectively. In 2017 the sales in Apple Company suffered a drop of -10 % from the price valuation that the customers had due to what happened to the iPhone in the same year segment.
Services from the apple company would be that main driver in the future of the company and that they needed to double on this sector to improve on the productivity of the company. Since 2017 there has been a drop in the sales of the iPhone. There was a heavy drop in the year 2019, and this implied that the product is becoming mature. The company shifted to streaming news and services, and they then decided to develop their TV shows that will stream their platform.
Since services will start becoming the key role for the financial goals in the company, it will face some challenges first. Since sales have been slowly growing in the market, the company needs to venture into a less competitive area, unlike in China, where there exist cheap and strong devices that have almost similar characteristics with Apple Company. Services like streaming Netflix and Disney should be considered in services that will improve on the income.